Prepare and analyze a direct labor budget
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Ceco Grass Care is a small lawn maintenance service that provides a variety of landscape services. A large part of Ceco's sales are generated through lawn maintenance. Jeff Roberts manages Ceco. Jeff reviewed the job order log for the next 12 weeks (three months ending July 26th, 2005), and the log is full. Ceco recently acquired several commercial property accounts and has plenty of work planned. A Summary of accounts shows that Ceco now has 11 commercial properties and 45 residential properties to maintain on a routine basis.
Each property is schedules for maintenance every two weeks. The commercial accounts require 16 worker-hours to service, and the residential accounts require four worker-hours.
Ceco currently has a cutting crew of three, each of whom is paid $8.50 an hour.
Required
A. prepare a direct labor budget for Ceco covering the next three months
B. does the budget raise and concerns for Ceco? Explain your answer.
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